STATE FIRE INSURANCE.

Otago Daily Times, Issue 10597, 18 February 1896, Page 6

STATE FIRE INSURANCE.

THE PREMIER'S

Wellington, Febrnnry 13. A deputation of delegates of the Insurers' Associations waited oa the Premier to-day te iwk him to take ap the question of State fira insurance. Auoklaud, Napier, Wellington, Wanganui, New Plymouth, Christcliurch, and Invercargill were represented.

Mr J. T. Garlick (the chairman) said that of nil the schemes discussed by the delegates that of a State department most commended itself to them, and they had passed a resolution that the time had arrived for the establishment of a State fire insurance department on the mutual principle—compulsory for buildings and optional for stock and effects, —and that tha Government ba asked to give their earnest attention to the matter at once. They had been practically unanimous that a system of municipal insurance would not work.

Mr D. J. Nathan (Wellington) said that the delegates represented over 600 firms and between £6,000,000 and £7,000,000 of insurance. They could not start a company of their own beoause the reinsurances would be blocked. They could get no information as to the tariffs from^he present companies. Insurance was becoming a monopoly, and that being so they felt that it would be better it should be a Government monopoly. In Wellington not more than a third of the property was inßUred owing to the rates being so high.

Mr Kingsland (Invercargill) quoted instances of companies paying from 70 to 200 per cent. With so many companies in the field the cost of management was excessive. Under the Government it might be reduced to 10 per cent. The Premier agreed that there wa§ reason for complaint at the concealment of tariffs. He would like all ths detailed information the deputation oould supply. He pointed out the difficulty in stepping over the heads of the local authorities, which was one chat could not be ignored. Could they not bs utilised as direct insurers and the State act as reinsurer ? They had to remember that lire brigades were controlled by the municipalities. He asked them to take this .suggestion into thoir consideration. A question like this, involving a new department, must be dealt with cautiously. The Government were quite competent to take it in hand, and if good ground were shown they would have no hesitation in breaking down the abnormal charges of what amounted to a monopoly, as they had in other instane63. The Government had not yet considered the matter, but it would receive the attention that its importmca demanded. They must, however, be very careful before committing the colony to any liability. The decision of the Government would be first announced to Parliament. He might msntion that the question had been submitted to officers of the Government Life department, and they had a valuable report from the head of that office, which made it clear that intricate machinery and careful legislation would be required before the new department that would be nccessscs could be set an.